Audit scope

A sample of Texas A&M Veterinary Medical Diagnostic Laboratory’s (Laboratory) purchase, travel and payroll transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning Sept. 1, 2011, through Aug. 31, 2012, was audited to determine compliance with applicable state laws.

Purchase transactions

Purchase transactions were audited for compliance with the GAA, eXpendit and other pertinent statutes.

No issues were identified.

Travel transactions

Travel transactions were audited for compliance with the GAA, Textravel and other pertinent statutes.

No issues were identified.

Security

The audit included a security review to identify any Laboratory employees with security in USAS or on the voucher signature cards who were no longer employed or whose security had been revoked. Upon termination or revocation, certain deadlines must be observed so that security can be revoked in a timely manner.

The audit identified:

Two employees who retained USAS security to expend funds for 456 days and 1,125 days after termination, respectively.

Fixed assets

The audit included a limited review of fixed assets acquired by expenditures during the audit period to verify existence of the assets.

All assets tested were in their intended location and properly recorded.

Other auditor observations

The Laboratory does not include estimated shipping charges on its purchase agreements. In most instances, the Laboratory indicates on its purchase agreements that it will pay shipping charges but does not estimate the amount it expects to pay. The Laboratory then pays whatever shipping charges are billed to them on the invoice.

A purchase agreement and/or purchase order is a contract entered into by the state and a vendor. The Laboratory may pay only the contracted amount as shown on the purchase agreement. If freight charges are not included or estimated in the purchase agreement, the charges are not owed by the Laboratory and should not be paid.

The Laboratory should document freight terms. In instances where the final amount of freight cannot be determined, the Laboratory may use estimated amounts. The Laboratory should document the limit that may not be exceeded for any freight amount. If it is determined that the upper limit for a freight amount will be exceeded, the vendor should obtain approval for the higher amount. Any approvals for higher amounts should be documented prior to the vendor invoicing the Laboratory.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Laboratory’s payroll, purchase and travel transactions was concluded on June 15, 2010.